600% Dividend: Ex-Date In 1 Day On 31st May; Buy/Sell The Blue Chip Stock?

Havells India Limited is a prominent global manufacturer of power distribution equipment and a leading Fast Moving Electrical Goods (FMEG) company. A vast range of products, such as Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, and Luminaires for Domestic, Commercial, and Industrial Applications, are all part of Havells' impressive position in the marketplace.

Havells India Dividend

"The Board of Directors decided to recommend a Final Dividend @ Rs. 6/- per equity share of Re. 1/- each i.e. 600 % for the financial year 2023-24. This is in addition to the Interim Dividend declared during the FY 2023-24 for an amount of Rs. 3/- per share. The Final Dividend, if approved by the shareholders in the forthcoming Annual General Meeting (AGM) of the Company, shall be paid/ dispatched to the shareholders on or before 30 days from the date of AGM," said the FMCG giant in a regulatory filing.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Member and Share Transfer Books of the Company will remain closed from 3rd June, 2024, Monday to 7th June, 2024, Friday (both days inclusive) for the purpose of 41st Annual General Meeting of the Company and the Final Dividend for financial year 2023-24. Please note that the 41st Annual General Meeting (AGM) of the Company is scheduled to be held on Friday, the 28th day of June, 2024," the company further informed the exchanges.

As per the data available on BSE, Havells India is going to trade ex-dividend on 31st May.

Havells India News

On May 28, 2024, the Executive Committee of the Board of Havells India Limited approved the execution of a Joint Venture Agreement in the ratio of 68.75:31.25, which is to be entered into the share capital of Havells Lighting LLC between its wholly-owned subsidiary, Havells International Inc (HII), and KRUT LED, LLC, a company organised under the laws of the State of South Carolina, USA (Krut). Currently, a fully owned subsidiary, Havells Lighting LLC (HLL) is responsible for marketing and selling Havells India Limited's lighting systems and products in the US market.

In one or more tranches, HII and Krut agree to invest up to $12 million, with agreed-upon ownership interest proportions of 68.75:31.25. Both parties will contribute their respective halves of the $5 million total initial investment at the end of the planned transaction. For a first period ending on December 31, 2028, Havells India Limited will grant HLL an exclusive license for the USA for lighting products and solutions. This license may be renewed based on achieving certain revenue objectives.

Havells India Share Price Target

"Indian multinational electrical equipment company Havells India Limited has generated a buzz in the market after declaring a cash dividend of Rs.6 per share, effective May 31, 2024. The company enjoys strong financials and has a record of delivering a one-year return of 45.45% and a dividend of 0.48%, outshining the sector yield of 0.45%.

Additionally, the company has a PE ratio of 93.20 against the average sector ratio of 50.13, implying it is currently undervalued. While these aspects make Havells stocks lucrative for many, it is currently trading in the overbought zone. Hence, I recommend waiting for a dip. Individuals may enter the stock at the buying range of Rs. 1770-1830 to achieve a targeted price of Rs. 2000-2500. I recommend holding this stock for 3-9 months to allow the portfolio to grow. However, investors and traders must consciously set and follow the target of Rs. 1650 to limit losses," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.